Oil prices are growing because of the dollar, which lost its two- week maximum
The pressure on oil quotations is increasing due to the fact that there is not much hope for a positive outcome of the September meeting of raw material producers. It is planned to arrange a production freeze at the meeting. However, futures contracts for oil are going up on Tuesday. This occurs against the background of the US dollar loss of its two-week maximum mark, which it reached on Monday.
The dollar moved away from the achieved peak due to the information expectation of the US employment by the investors. According to Stanley Fischer, Vice Chairman of the Federal Reserve, this information is a significant factor for a rate increase in the near future.
A slight position of the US currency influences the oil price, making it cheaper to purchase for the holders of other currencies.
At the same time the confidence that the negotiations of the OPEC member states in September will be successful is melting. And this puts pressure on oil prices.
“There is a feeling that the negotiations on the OPEC production freeze might result in something positive, but it’s just talks” – said Robert Nunan of Mitsubishi Corporation.
To the beginning of the day futures contracts for Brent crude oil were being traded at $ 49.39 per barrel. This is higher than the closing mark of the previous session by 0.26 percent.
Futures on WTI raw materials have risen by 0.34 percent to $ 47.14 per barrel.
Last week Khalid Al-Falih, Minister of Energy of Saudi Kingdom, in his interview to Reuters told that he did not consider the intervention in the oil market to be mandatory, because “the market was moving in the right direction.”